How Trump's Threatened 200% Tariffs Could Impact Your Future Liquor Store Trips
President Trump's approval rating has been on the decline; several recent polls cite the way he has been handling the economy as a top reason for the discontent. Egg prices have many scrambling, and the president has announced new tariffs on many goods imported from Canada, Mexico, and China, and the tariff threats just keep on coming. The latest sector to be targeted is European alcohol.
In a Truth Social post from March 13, 2025, Trump calls the European Union (E.U.) "one of the most hostile and abusive taxing and tariffing authorities in the World" and threatens a retaliatory 200% tariff on "all WINES, CHAMPAGNES, AND ALCOHOLIC PRODUCTS COMING OUT OF FRANCE AND OTHER E.U. REPRESENTED COUNTRIES" in response to the E.U.'s plan to impose a 50% tariff on American whiskey.
Despite Trump's claim that these tariffs would be "great for the Wine and Champagne businesses in the U.S.," those who import and sell wine from the E.U. stress that a 200% tariff would cause prices to skyrocket, basically destroy the European wine market in the United States, and affect U.S.-based wineries as well, per AP News. Your favorite French wine could become three times more expensive than it costs right now or become unavailable altogether. Jeff Zacharia of the fine wine store Zachys told AP News that he's ceased buying European wine until it's clear exactly what effect these tariffs will have.
Read more: 13 Popular Kirkland Liquors At Costco, Ranked By Online Reviews
The E.U. comprises 27 countries, including huge wine producers like France, Italy, Germany, Portugal, and Spain. Think about your favorite wine store. It would look pretty empty without its collection of wine, Champagne, and liquor offerings from these countries, or at least pretty inaccessible when a usually $20 bottle jumps to $60. However, most brands of gin would be unaffected, as they are generally imported from the U.K., which officially left the E.U. in 2020. But popular brands like Hennessy, Campari, Moët, Aperol, and Jameson could face huge price hikes.
In addition to the untenable spikes in cost on imported wine and liquor, some U.S.-made alcohol would likely be negatively impacted. Trump's claims that this tariff would be beneficial for the American wine and Champagne industries are erroneous for a couple of reasons. First, American Champagne doesn't exist. There's a difference between Champagne, prosecco, and other sparkling wines; Champagne can only come from the Champagne region of France, which would certainly fall under Trump's proposed 200% tariff.
Second, this tariff is just the latest announcement in an escalating back-and-forth that could have disastrous impacts on many aspects of the U.S. wine industry. The E.U.'s 50% whiskey tariff was a response to Trump's 25% tariff on steel and aluminum imports, so if this 200% tariff goes into effect on April 1, as it's currently slated to do, it could intensify the trade war. A possible retaliatory wine tariff from the E.U. on American wine imports could be on the cards, negatively affecting sales for home-grown wines. According to The Wine Institute, per AP News, the tariffs would "hurt the broader wine sector including farmers, vintners, distributors, retailers, and the millions of people working across the extended wine supply chain."
Read the original article on Tasting Table.
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